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Housing index declines in June | The Real Deal | New York Real Estate News June 16, 2009

Posted by John Watch in News Feed.
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Housing index declines in June | The Real Deal | New York Real Estate News

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No one should be surprised by statistic for the Housing Index decline.  Based on reports from the National  Association of Realtors, property data and public records from other sources such as Commerce and Bureau of Census, sales transactions appear to be increasing for the first and second quarter.  This upward tick should be expected because the Spring/Summer season always shows an increase. 

While this does not indicate a reversal in the current crisis, it does indicate the potential for market stabilization.  Additionally, it appears that the decline in housing is attributed not only to the oversupply in housing, but it is also attributed to smaller homes being sold versus larger homes during the peak.

Housing in Crisis  discusses the surplus housing situation and the impact on property values when we compare Median Sales Price Per Square Foot historical trends.  There is no doubt the market is correcting itself, but we need to compare Apples to Apples, not Apples to Oranges or Pears or Bananas.

A full recovery will not occur until the surplus housing crisis abates and this most likely will not occur until 2011 or 2012.  With over 3 million excess housing units it will take no less than three years for the natural cycle of population growth to absorb these excess units.  By analyzing the actual data, not estimates one can evaluate market conditions in a more objective manner.



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